After weeks of wrangling and negotiating, President Joe Biden and House Speaker Kevin McCarthy (R-CA) were finally able to reach a debt limit deal. House and Senate leaders have called both bodies back in session following Memorial Day with hopes of passing the deal before June 5, Treasury Secretary Janet Yellen’s latest estimate of when the United States would default without increased borrowing authority. Despite the agreement by Biden and McCarthy, there is already opposition from both the right and the left, which leaders will have to manage as they look to cobble together the votes needed to pass the deal into law. The House Rules Committee will meet at 3 p.m. on Tuesday to set the stage for floor consideration of the package. As it now stands, the House will vote on the bill on Wednesday and if it’s passed send it to the Senate for consideration.
The proposal would suspend the debt ceiling through January 1, 2025; impose discretionary spending caps for the next two fiscal years; and incentivize a process for the passage of all 12 appropriations bills, imposing a 1% reduction on discretionary spending if not satisfied. Additionally, the bill would expand work requirements under federal nutrition and cash assistance programs; claw back a portion of Internal Revenue Service funding provided under the Democrats’ Inflation Reduction Act; rescind billions of unspent COVID-19 funds; require the Administration to resume collecting federal student loan payments; and streamline energy permitting, including expediting authorization of the Mountain Valley Pipeline project in West Virginia and Virginia.
The House Freedom Caucus is arguing that the proposal is a capitulation to Biden and does not meet the necessary threshold for defense spending while the left is opposing it because of environmental concerns. If the package passes in the House, it will move to the Senate, where a single objection can trigger time-consuming procedures that could bring the country dangerously close to its first-ever default. Senator Mike Lee (R-UT) has previously threatened to hold up passage of the bill if it does not meet his expectations, although both Senate Majority Leader Chuck Schumer (D-NY) and Senate Minority Leader Mitch McConnell (R-KY) support the proposal and are incredibly effective at wrangling consensus among their caucuses. The legislation requires 60 votes to pass in the Senate.
On Tuesday, the House will meet to consider multiple bills under suspension.
- Bills expected under suspension of the rules.
- H.R. 835 – Fair Investment Opportunities for Professional Experts Act, as amended (Rep. Hill – Financial Services). The legislation would permit more individuals to invest in private securities offerings as “accredited investors” based on education or job experience.
- H.R. 2792 – Small Entity Update Act, as amended (Rep. Wagner – Financial Services). The legislation would require the Securities and Exchange Commission (SEC) to study how a “small entity” should be defined to ensure a “meaningful” number of entities would be covered by it.
- H.R. 2795 – Enhancing Multi-Class Share Disclosures Act, as amended (Rep. Meeks – Financial Services). The bill would require companies that issue different classes of stock that give some executives more voting control than others to disclose more information about their multi-class stocks.
- H.R. 2796 – Promoting Opportunities for Non-Traditional Capital Formation Act, as amended (Rep. Waters – Financial Services). The bill would require the SEC’s Small Business Capital Formation Office to promote capital-raising options for traditionally underrepresented small businesses.
- H.R. 2797 – Equal Opportunity for All Investors Act of 2023, as amended (Rep. Flood – Financial Services). The legislation would permit more individuals to qualify as accredited investors by taking an exam demonstrating their financial knowledge.
- H. Res. 382 – Condemning the rise of antisemitism and calling on elected officials to identify and educate others on the contributions of the Jewish American community, as amended (Rep. Wasserman Schultz – Judiciary).
On Wednesday, the House is scheduled to meet for legislative business.
- Bills expected under a rule.
- H.R. 3746 – The Fiscal Responsibility Act of 2023 (Rep. McHenry – Ways and Means). The measure would suspend the debt ceiling through January 1, 2025 and impose discretionary spending caps for the next two fiscal years.
On Monday, the Senate will vote on the confirmation of Darrel Papillion to be a judge for the Eastern District of Louisiana.